By
34 min ago 2 min read
Carbon capture, utilisation and sequestration (CCUS) company 1PointFive, a wholly owned subsidiary of Occidental Petroleum (Oxy), has reported a “non-process component issue” at its Stratos direct air capture (DAC) facility in Texas, complicating its start-up timeline.
During the Q1 earnings call, Richard Jackson, Senior Vice-President and COO at Oxy, said the second construction phase was complete, but phase one commissioning activities had led to the identification of the issues.
In 2023, the company anticipated the site would be commercially operational by mid-2025.
“The company is now evaluating the repair timeline and assessing the impact on the operations schedule, and will provide an update next quarter,” he added.
Oxy does not expect this to impact its capital range for the year, though it is still early in its assessment of the repairs.
Commissioning of the first phase included operating air contactors and the central processing facility. Oxy said these had performed as expected and that commissioning activities had been completed.
Once completed, the large-scale Stratos DAC facility will support companies by providing cost-effective solutions for hard-to-decarbonise industries, which can be used in conjunction with individual emissions reduction programmes.
The second phase represents the addition of 250,000 tonnes per year of carbon dioxide (CO2) capture capacity, bringing total capacity, once operational, to 500,000 tonnes of CO2 each year.
DAC technology captures CO2 from ambient air and permanently stores it geologically to support global decarbonisation efforts.
The facility is backed by $550m in investment from global asset platform BlackRock.
In January, global management consulting firm Bain & Company purchased of carbon dioxide removal (CDR) credits from the Stratos plant.
